Sierra Metals Reports Q2 2024 Production Results
- Successful planned maintenance and commissioning of new primary crusher at Bolivar in Q2 2024, ensuring stronger H2-2024 production levels
- Development below the 1120 Level at Yauricocha remains on schedule to achieve full production by Q4 2024
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Based on H1-2024 performance and expected production in H2-2024,
reaffirms 2024 annual guidanceSierra Metals
Consolidated Q2 2024 financial results will be released on
(All metal prices reported are in USD)
Second Quarter 2024 Consolidated Production Results
Six months ended |
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Consolidated Production |
Q2 2024 |
Q1 2024 |
% Var. |
Q2 2023 |
% Var. |
2024 |
2023 |
Tonnes processed |
627,015 |
638,916 |
-2% |
650,302 |
-4% |
1,265,931 |
1,168,464 |
Daily throughput |
7,166 |
7,302 |
-2% |
7,432 |
-4% |
7,234 |
6,677 |
Copper production (000 lb) |
8,531 |
11,247 |
-24% |
10,459 |
-18% |
19,778 |
18,744 |
Zinc production (000 lb) |
11,272 |
10,132 |
11% |
12,228 |
-8% |
21,404 |
22,807 |
Silver production (000 oz) |
387 |
427 |
-9% |
523 |
-26% |
814 |
912 |
Gold Production (oz) |
3,438 |
4,505 |
-24% |
4,311 |
-20% |
7,943 |
8,102 |
Lead production (000 lb) |
3,053 |
3,049 |
0% |
3,930 |
-22% |
6,102 |
6,708 |
Copper equivalent pounds (000's)(1) |
16,767 |
19,975 |
-16% |
20,504 |
-18% |
36,907 |
37,132 |
(1) Copper equivalent pounds for Q2 2024 were calculated using the following average realized prices: |
Consolidated quarterly throughput during Q2 2024 was 627,015 tonnes, a reduction of 2% and 4% compared to Q1 2024 and Q2 2023, respectively. On a year-to-date basis, consolidated throughput is 8% higher in 2024 than in 2023.
Lower grades at Yauricocha for Q2 2024 compared to Q1 2024 and Q2 2023 were partially compensated for by the increase in throughput. The resultant metal production for Q2 2024 was lower than Q1 2024 except for zinc (11% higher) and lead (in-line). As mentioned in the Company’s Q1 2024 disclosures, these lower grades from Yauricocha were primarily due to the limited available ore above the 1120 level. The Company expects that grades and throughput will improve as the development below 1120 level progresses.
During Q2 2024, Bolivar experienced a decrease in throughput and grades as compared to Q1 2024 and Q2 2023. The lower throughput rates in Q2 2024 were a result of planned maintenance downtime required for the commissioning of the new primary crusher and due to lower water availability, which has been resolved as the rainy season has commenced. For the six-month period ended
Six months ended |
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Yauricocha Production |
Q2 2024 |
Q1 2024 |
% Var. |
Q2 2023 |
% Var. |
2024 |
2023 |
Tonnes processed |
253,148 |
240,686 |
5% |
244,315 |
4% |
493,834 |
463,460 |
Daily throughput |
2,893 |
2,751 |
5% |
2,792 |
4% |
2,822 |
2,648 |
Copper grade |
0.63% |
0.81% |
-22% |
0.72% |
-13% |
0.72% |
0.75% |
Zinc grade |
2.38% |
2.31% |
3% |
2.65% |
-10% |
2.34% |
2.60% |
Silver grade (g/t) |
35.48 |
39.95 |
-11% |
54.83 |
-35% |
37.66 |
50.86 |
Gold Grade (g/t) |
0.32 |
0.36 |
-11% |
0.40 |
-20% |
0.34 |
0.43 |
Lead grade |
0.69% |
0.72% |
-4% |
0.87% |
-21% |
0.70% |
0.79% |
Copper recovery |
67.56% |
76.40% |
-12% |
72.21% |
-6% |
72.42% |
73.37% |
Zinc recovery |
84.98% |
82.66% |
3% |
85.54% |
-1% |
83.87% |
85.82% |
Silver recovery |
68.29% |
72.22% |
-5% |
73.25% |
-7% |
70.32% |
74.58% |
Gold Recovery |
16.58% |
17.88% |
-7% |
20.33% |
-18% |
17.25% |
21.82% |
Lead recovery |
79.83% |
79.26% |
1% |
83.88% |
-5% |
79.55% |
82.67% |
Copper production (000 lb) |
2,383 |
3,288 |
-28% |
2,808 |
-15% |
5,671 |
5,703 |
Zinc production (000 lb) |
11,272 |
10,132 |
11% |
12,228 |
-8% |
21,404 |
22,807 |
Silver production (000 oz) |
197 |
223 |
-12% |
316 |
-38% |
420 |
565 |
Gold Production (oz) |
433 |
503 |
-14% |
633 |
-32% |
936 |
1,387 |
Lead production (000 lb) |
3,053 |
3,049 |
0% |
3,930 |
-22% |
6,102 |
6,708 |
Copper equivalent pounds (000's)(1) |
7,810 |
8,591 |
-9% |
9,580 |
-18% |
16,569 |
18,314 |
(1) Copper equivalent pounds for Q2 2024 were calculated using the following average realized prices: |
Throughput from Yauricocha during Q2 2024 was 253,148 tonnes, a 5% increase over Q1 2024 and 4% increase over Q2 2023 mainly driven by the increased access to mining areas. Throughput volumes are expected to continue to improve as the development below 1120 level progresses.
For Q2 2024, zinc grades were 3% higher when compared to Q1 2024, but all other metal grades were lower. Compared to Q2 2023, all metal grades decreased, mainly due to mining in lower grade ore bodies above the 1120 level.
Copper equivalent production of 7.8 million pounds for Q2 2024 decreased by 9% from Q1 2024 and by 18% from Q2 2023, consistent with the decrease in grades when compared to both periods.
Six months ended |
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Bolivar Production |
Q2 2024 |
Q1 2024 |
% Var. |
Q2 2023 |
% Var. |
2024 |
2023 |
Tonnes processed (t) |
373,867 |
398,230 |
-6% |
405,987 |
-8% |
772,097 |
705,004 |
Daily throughput |
4,273 |
4,551 |
-6% |
4,640 |
-8% |
4,412 |
4,029 |
Copper grade |
0.83% |
0.98% |
-15% |
0.92% |
-10% |
0.91% |
0.90% |
Silver grade (g/t) |
19.55 |
19.59 |
0% |
19.65 |
-1% |
19.57 |
18.69 |
Gold grade (g/t) |
0.38 |
0.47 |
-19% |
0.42 |
-10% |
0.43 |
0.44 |
Copper recovery |
89.79% |
92.66% |
-3% |
92.92% |
-3% |
91.39% |
93.51% |
Silver recovery |
80.65% |
81.46% |
-1% |
80.45% |
0% |
81.07% |
82.06% |
Gold recovery |
65.46% |
66.54% |
-2% |
66.38% |
-1% |
66.07% |
67.72% |
Copper production (000 lb) |
6,148 |
7,959 |
-23% |
7,651 |
-20% |
14,107 |
13,041 |
Silver production (000 oz) |
190 |
204 |
-7% |
207 |
-8% |
394 |
347 |
Gold production (oz) |
3,005 |
4,002 |
-25% |
3,678 |
-18% |
7,007 |
6,715 |
Copper equivalent pounds (000's)(1) |
8,957 |
11,384 |
-21% |
10,925 |
-18% |
20,338 |
18,818 |
(1) Copper equivalent pounds for Q2 2024 were calculated using the following average realized prices: |
Bolivar processed 373,867 tonnes of ore during Q2 2024, which was a 6% and 8% decline from Q1 2024 and Q2 2023, respectively. Lower throughput during Q2 2024 was mainly attributable to the four days of the scheduled plant maintenance combined with lower availability of water for the processing facilities. The issue of water availability has been resolved, and the Company anticipates recovering production levels in the second half of the year supported by the new plant equipment.
Lower grades during Q2 2024 as compared to Q1 2024 and Q2 2023 were anticipated as a result of the mining program sequence. There was a lower contribution from the high-grade Dulce zone during the quarter as compared to Q1 2024. However, the Company continues to better understand this new zone, and expects to continue mining from Dulce throughout the year.
Metal production for Q2 2024 declined because of lower throughput and lower grades compared to Q1 2024 and Q2 2023, resulting in 21% and 18% less copper equivalent production from the respective quarters.
Bolivar recorded an 8% increase in the copper equivalent production pounds for the six months ended
Conference Call and Webcast
Management will host a conference call and webcast to discuss Q2 2024 financial and operating results on
Webcast: |
https://event.choruscall.com/mediaframe/webcast.html?webcastid=96Y6c1uC |
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Dial In: |
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Other: 1-647-484-8814 |
Participants are asked to dial-in 5 to 10 minutes before the scheduled start time and ask to join the Sierra Metals Second Quarter 2024 Consolidated Financial Results Call.
About
Forward-Looking Statements
This press release contains forward-looking information within the meaning of Canadian securities legislation. Forward-looking information relates to future events or the anticipated performance of Sierra and reflect management's expectations or beliefs regarding such future events and anticipated performance based on an assumed set of economic conditions and courses of action. In certain cases, statements that contain forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", "will allow", "occur" or "be achieved" or the negative of these words or comparable terminology. Forward-looking statements include statements with respect to the timing of the development below the 1120 level, the timing of the increase in production and the timing to operate at full capacity at Yauricocha. By its very nature forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual performance of Sierra to be materially different from any anticipated performance expressed or implied by such forward-looking information.
Forward-looking information is subject to a variety of risks and uncertainties, which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the risks described under the heading "Risk Factors" in the Company's annual information form dated
The risk factors referred to above are not an exhaustive list of the factors that may affect any of the Company's forward-looking information. Forward-looking information includes statements about the future and is inherently uncertain, and the Company's actual achievements or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors. The Company's statements containing forward-looking information are based on the beliefs, expectations, and opinions of management on the date the statements are made, and the Company does not assume any obligation to update such forward-looking information if circumstances or management's beliefs, expectations or opinions should change, other than as required by applicable law. For the reasons set forth above, one should not place undue reliance on forward-looking information.
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